Atalaya Mining Regulatory News (ATYM)

AIM: EMED, TSX: EMD 7 June 2011

Geological Modelling Highlights Significant Underground Potential at Rio Tinto Mine

EMED Mining Public Limited ("EMED Mining" or "the Company"), the AIM-quoted and TSX-listed mining exploration and development company, announces that its detailed geological investigations on zones outside the bounds of current development plans have identified significant underground potential in several areas. One of these zones now presents a second important potential mine development opportunity at the Rio Tinto Copper Mine - the San Dionisio underground deposit, which has the potential to complement current production plans.

EMED Mining intends to undertake further work to investigate the development potential of San Dionosio and allow a NI43-101 resource to be reported - as soon as permitting for the project allows.

In 1993 the Chief Geologist of the then operator Rio Tinto Minera SA (an associate of Rio Tinto Plc) reported part of the San Dionisio deposit (the Alfredo Stockwork) as containing "geological resources" (non 43-101 compliant) of 17.2 million tonnes at 1.45% copper (using a cut-off grade of 0.6% copper), containing approximately 250,000 tonnes of copper. Based on EMED Mining's detailed investigation of over 1,000 drill holes and underground sampling data (the data has now been digitised and initial block models prepared), the Company has concluded that the previously reported tonnage is worthy of assessment for modern mine development and is part of a much larger zone of mineralisation worthy of investigation within the context of today's industry economics.

San Dionisio is one of the underground deposits located adjacent to the Cerro Colorado open pit which forms the basis for the Company's current reported mineral resources and ore reserves. This and other significant opportunities to potentially extend mine life and create wealth for all stakeholders will be investigated further when EMED Mining is permitted to conduct drilling and other complementary activities at its Rio Tinto Mine site, so that it may report all mineralisation in compliance with current reporting standards.

Harry Anagnostaras-Adams, Managing Director of EMED Mining said, "We have always felt that the Rio Tinto Mine is likely to have a mine life significantly in excess of the 14 years in our published base case. We have already reported the potential to expand the planned Cerro Colorado open pit and today we put the spotlight on one of the adjacent underground deposits that we believe can complement the already planned operations. Our goal is to systematically identify and develop the full potential of the Rio Tinto complex."

Any additional 43-101 resources identified at San Dionisio will complement the current resources of 940,000 of copper metal in situ. The Rio Tinto deposit has long been recognised as one of the world's largest massive sulphide mineralisation systems and yet negligible exploration has been conducted since 1993. Without considering exploration potential, the known mineralisation at San Dionisio compares favourably with similar deposits currently being mined at other underground mines in the Iberian Pyrite Belt.

This reported historical "geological resource" inventory cannot be considered a mineral resource or a mineral reserve under CIM guidelines as economic parameters used to derive the estimates do not reflect accurately the current economics of exploiting this deposit. Furthermore, procedures and data used have not been reviewed and therefore cannot be classified as a mineral resource under Canadian Securities Administrators NI 43-101 guidelines until verified by a Qualified Person. In all cases, insufficient documentation exists that would allow classification of these historic resource estimates into the categories as currently defined by CIM guidelines. Accordingly the Company is not treating the historical estimate as current mineral resources or mineral reserves as defined in NI 43-101; and the historical estimate should not be relied upon.

As soon as regulatory permitting allows, EMED Mining plans to undertake a thorough verification program of historical data in order to advance the deposit to declaration of resources at San Dionisio in compliance with NI 43-101 guidelines. The appropriate cut-off grade for the next stage of resource evaluation will also need to be assessed and determined from first principles.

Enquiries

Background Information

The Rio Tinto Copper Mine has a very long history of producing copper. Underground mining was undertaken for thousands of years and only ceased in 1986. Open-pit mining of lower grade copper ore at a much larger scale has taken place since then.

The current processing facility was built in 1969 and expanded in 1982-1985 by Rio Tinto Minera SA (an associate of Rio Tinto Plc) and has been on care and maintenance since 2003.

Minimal exploration has been conducted since approximately 1993 when Rio Tinto Plc sold its equity interest. The vast majority of the mine's extensive historical drilling data has been inserted by EMED Mining into a modern database that facilitates a much better understanding of the controls on the mineralisation and also serves to highlight gaps in the data.

Following completion in 2010 of EMED Mining's submissions for project permitting, the exploration team has been focused on building an integrated database and planning exploration programs. Exploration drilling is planned to start shortly after the Company is granted Administrative Standing by the mining authorities in Spain.

Company geologists continue to collate and interpret this extensive historical data. Documents have recently been found which summarise such compilation and interpretation of historical data that was undertaken by previous owners of the Rio Tinto Copper Mine.

Underground Mining Potential

A number of deeper exploration targets have been identified that are considered to have good potential to add Mineral Resources which may be accessible via underground mining methods.

The data from approximately 4,000 maps of the extensive historical underground workings at the Rio Tinto Copper Mine have recently been added to EMED Mining's database. Historical geological mapping, historical underground drill-hole data and historical underground channel sampling are currently being added to the database.

Interpretation of this data will facilitate an improved 3D spatial understanding of this deeper mineralisation and focus the exploration accordingly.

Copper mineralisation detailed in this data is outside of the current resource estimates. This data needs to be confirmed by further investigation and appropriately verified prior to becoming suitable for inclusion in resource estimates. Drilling is planned to confirm and extend known mineralisation down-plunge in order to provide sufficient data to estimate initial resources for potential underground mines.

San Dionisio Underground Mine

The Corta Atalaya is another open pit on EMED Mining's property and was primarily mined for massive sulphide ore which was dominantly pyrite without regard to - copper or other base metal credits. Based on historical production records it is estimated that between 1978 and 1986 2.8 million tonnes was mined at 1.6% copper from the Alfredo Stockwork portion of the San Dionisio ore body. During this period of limited production, extensive diamond drilling of the San Dionisio deposit was undertaken from within the underground mine workings. Assay data from this diamond drilling, combined with data collected during mining, provides very good information on distribution of mineralisation at San Dionisio. From 1986 the focus switched to mining the adjacent large Cerro Colorado open pit, for copper with silver credits.

Much work was undertaken in the late 1980's and early 1990's by the owners of the mine at that time, Rio Tinto Minera SA. The Chief Geologist produced a report dated November 1993 which estimated the existing "geological resources" of the Alfredo Stockwork mineralisation at San Dionisio totalled 17.2 million tonnes 1.45% copper (using a cut-off grade of 0.6% copper) ), containing approximately 250,000 tonnes of copper.

This reported historical "geological resource" inventory cannot be considered a mineral resource or a mineral reserve under CIM guidelines as economic parameters used to derive the estimates do not reflect accurately the current economics of exploiting this deposit. Furthermore, procedures and data used have not been reviewed and therefore cannot be classified as a mineral resource under Canadian Securities Administrators NI 43-101 guidelines until verified by a Qualified Person. In all cases, insufficient documentation exists that would allow classification of these historic resource estimates into the categories as currently defined by CIM guidelines. Accordingly the Company is not treating the historical estimate as current mineral resources or mineral reserves as defined in NI 43-101; and the historical estimate should not be relied upon.

As soon as regulatory permitting allows, EMED Mining plans to undertake a thorough verification program of historical data, in order to advance the deposit to declaration of resources at San Dionisio in compliance with NI 43-101 guidelines. The appropriate cut-off grade for the next stage of resource evaluation will also need to be assessed and determined from first principles.

EMED Mining has recently completed a block model utilising the extensive historical assay data from the San Dionisio deposit. Preliminary outcomes from this block model support the estimate provided above for stockwork mineralisation at San Dionisio.

Current Reserves and Resources - Open Pit Only

Behre Dolbear has completed a technical report entitled "NI 43-101 Technical Report on Reopening the Rio Tinto Copper Mine, Huelva Province, Spain", dated 17 November 2010. This report was filed with various regulatory authorities as part of the process for EMED Mining's dual listing on the Toronto Stock Exchange and is available on SEDAR under the Company's profile at www.sedar.com.

Behre Dolbear reviewed the previously published JORC Code-compliant reserves and resources for the Rio Tinto Copper Mine and found these estimates to be fair and reasonable, which are summarised as follows:

> Proven and Probable Ore Reserves totalling 123 million tonnes at 0.49% copper, containing 606,000 tonnes of copper; and

> Measured and Indicated Mineral Resources totalling 203.1 million tonnes at 0.46% copper, containing 933,400 tonnes of copper (inclusive of Ore Reserves).

These Ore Reserves and Mineral Resources include only mineralisation that may potentially be mined in the Cerro Colorado open pit. Both estimates were based on a cut-off grade of 0.20% copper, at copper prices of US$2.00/lb and US$3.00/lb, respectively.

Known mineralisation in the vicinity of historical underground mines is not included in current reserves or resources.

Qualified Persons Statement

Information in this report as regards the Rio Tinto Mine that relates to Mineral Resource estimates is based on information compiled by Mr. Pat Stephenson, BSc (Geology) and Mr. Ron Cunneen, BSc (Geology), with Mr. Stephenson taking responsibility for the Mineral Resource estimates and Mr. Cunneen taking responsibility for the data on which the estimates are based.

Mr Stephenson is Regional Manager, Vancouver and Principal Geologist with AMC Mining Consultants (Canada) Ltd and a full-time employee of that company. He is a Fellow of The Australasian Institute of Mining and Metallurgy.

Mr. Cunneen is Head of Exploration for EMED Mining and a full-time employee of that company. He is a Member of The Australian Institute of Geoscientists.

Information in this report as regards the Rio Tinto Mine that relates to Ore Reserve estimates is based on information compiled by Mr. Andy Robb, BSc (Mining Engineering). Mr. Robb is Principal Mining Consultant with AMC Consultants and a full-time employee of that company. He is a Member of the Australasian Institute of Mining and Metallurgy.

Mr. Stephenson, Mr. Cunneen and Mr. Robb have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activities which they are undertaking to qualify as "Competent Persons" as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" ("JORC Code") and "Qualified Persons" as defined in the "National Instrument 43-101 of the Canadian Securities Administrators" ("NI 43-101") and "CIM Definition Standards For Mineral Resources and Mineral Reserves" of December 2005 as prepared by the CIM Standing Committee on Reserve Definitions of the Canadian Institute of Mining.

Information in this report as regards the Rio Tinto Mine that relates to San Dionisio mineralisation is based on information compiled by the on-site geological team and overseen by Mr. Cunneen.

Mr. Stephenson, Mr. Cunneen and Mr. Robb consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Cautionary Notes

This announcement contains "forward looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of metals, the estimation of ore reserves and resources, the conversion of estimated resources into reserves, the realisation of ore reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Often, but not always, forward looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Accordingly, readers should not place undue reliance on forward looking statements.

Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; the future costs of capital to the company; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, terrorist attacks, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in this announcement.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward looking statements contained herein are made as of the date of this announcement and the Company disclaims any obligation to update any forward looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements

About EMED Mining Public Limited

EMED Mining is at the forefront of the revival of responsible mining in Europe with several projects at different stages of development across the continent.

EMED Mining is focused on two key projects:

Copper in Spain: The Company's 100%-owned flagship project is the historic Rio Tinto Copper Mine (also known as Proyecto de Rio Tinto) near Seville, Spain. EMED Mining is currently permitting the restart of operations with copper production planned to restart during 2012.

Gold in Slovakia: EMED Mining discovered the Biely Vrch porphyry gold deposit in Central Slovakia and is currently advancing the planning and permitting necessary for development.

For further information on EMED Mining and technical details on the Company's projects, please refer to www.emed-mining.com.